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Valibel Finance - A Look Back @ the IPO

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  • Valibel Finance - A Look Back @ the IPO

    A company listed back in 5/2010 when DP divested 5.2 Million Shares @22Rs.

    Since then the company has come a long way creating wealth to its shareholders.

    The company has increased its Dividends over the years from 50c to as high as 6.50 per annum.
    The share price now trading @65 Rupees.

    Total dividends paid since 2010 is now stands at Rs 20Rs exactly, almost IPO price.
    The company recently concluded a successful RI @60Rs per share in the proportion of 5 new shares for every 12 shares.
    As a result, the cost per share after RI would have got adjusted from 22 to 33 rupees.

    The company has quadrupled the no of branches from 10 to 40 over the span of 10 years. And this has increased the revenue per branch from 43 million to over 200 million per annum.
    The PBT per branch is also increased from 10 million to almost 60 million rupees.

    Below is an excel spreadsheet with key stats and ratios. I hope it will help you to look back companies progress over the years.

    Click image for larger version  Name:	vfin.PNG Views:	0 Size:	565.1 KB ID:	14042

    The growth we witnessed between 2010-2014 is no longer applicable and has since then gradually stayed lower. The columns CAGR 2010-14 and 2015 till 2019 would show pressure/challenges the company had envisaged.
    It is a remarkable achievement despite all the obstacles it had to endure, the company has been going from strength to strength.

    The company has maintained healthy ROE over 25%.
    NIM improving since 2016.
    Deposits & Lending growing in double digits.

    Dividends vastly improved, unlike certain FINS.

    Trading relatively below 4PER is pathetic. However we have to be cognizant the environment within which we are operating.

    The company has maintained very low Gross NPL and Net NPL far below Sector averages in the past years. Thats remarkable.
    Statutory ratios are well maintained.

    Companys success will greatly depend on new product innovation, expansions.
    We could expect something from the technological advancement to see VFIN become FINTECH in literal meaning.

    The next achievement lies in earning 10Billion Gross Income, hopefully, they could cross over it in CFY.

    To be continued.....
    "The best values today are often found in the stocks that were once hot and have since gone cold"

  • #2
    Click image for larger version

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    "The best values today are often found in the stocks that were once hot and have since gone cold"

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    • #3
      Have a look at the EPS recalculated by me after the Rights Issue, taking into calculation the Bonus elemant.
      The share is trading 2.5PER compared to the last FY earnings figures.

      IMO buying at 65 is fully worth.

      Please do additional research and decide.

      Click image for larger version

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      "The best values today are often found in the stocks that were once hot and have since gone cold"

      Comment


      • #4
        IMO 65 CMP is a good opportunity to buy and hold. Possibly we could see appreciation towards 75.
        Trading extremely at a discount compared to PER valuation.
        Click image for larger version

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        "The best values today are often found in the stocks that were once hot and have since gone cold"

        Comment


        • #5
          Originally posted by SHARK View Post
          Have a look at the EPS recalculated by me after the Rights Issue, taking into calculation the Bonus elemant.
          The share is trading 2.5PER compared to the last FY earnings figures.

          IMO buying at 65 is fully worth.

          Please do additional research and decide.

          Click image for larger version

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          The concern would be whether the performance will be looked upon immediate 3 month horizon instead beyond that.
          "The best values today are often found in the stocks that were once hot and have since gone cold"

          Comment


          • #6
            Agree SAHARK

            If you see the maturity profile, their interest bearing liabilities are highly concentrated on 1-12m bracket and Assets are spread mostly long term. What does this mean? When interest caps introduced by CB effective. their renewals of FDs will be at lower whereas Loans will hardly see interest on downwards. Once a Loan/Lease is taken for long term hardly any interest adjustment downside will take place as this is fact. So they will get good spread this coming Qtr
            Attached Files

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            • #7
              Thanks Prasa. Appreciate your views.
              "The best values today are often found in the stocks that were once hot and have since gone cold"

              Comment


              • #8
                What a great, detailed breakdown Shark. Thank you for that. VFIN is one of my gems for the future as a dividend cash cow and capital gains appreciation. By no means am I trying to compare but imagine the people who purchased even 10k of LFIN at IPO or even just before the war ended are like? What value!

                Comment


                • #9
                  Happy to see you GK.
                  All the best with your investment.
                  VFIN should move gradually to much higher price than CMP with better earnings.
                  Just that it needs support from a serious buyer who see value in it.
                  I see some foreign entity in the T20 SH list.
                  Hopefully many more will join as we progress.
                  "The best values today are often found in the stocks that were once hot and have since gone cold"

                  Comment

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